Transition, height and well-being

Using newly available data, we re-evaluate the impact of transition from plan to market on objective and subjective well-being. We find clear evidence of the high social cost of early transition reforms: cohorts born around the start of transition are shorter than their older or younger peers. The difference in height suggests that the first years of reform were accompanied by major deprivation. We provide suggestive evidence on the importance of three mechanisms which partially explain these results: the decline of GDP per capita, the deterioration of healthcare systems, and food scarcity. On the bright side, we find that cohorts that experienced transition in their infancy are now better educated and more satisfied with their lives than their counterparts. Taken together, our results imply that the transition process has been a traumatic experience, but that its negative impact has largely been overcome

Language Proficiency and Migration: An Argument Against Testing

This paper aims at questioning the rationale for language testing in immigration policies. Although we consider knowledge of the host country’s language(s) useful and desirable for both the migrant and the host society, we argue that mandatory language testing cannot be justified. Our purpose is to offer justifications for rejecting language as a legitimate tool for controlling state borders and to regulate (access to) citizenship of a liberal democracy

History and coordination failure

An extensive literature discusses the existence of a virtuous circle of expectations that might lead communities to Pareto-superior states among multiple potential equilibria. It is generally accepted that such multiplicity stems fundamentally from the presence of positive agglomeration externalities. We examine a two-sector model in this class and look for intertemporal perfect foresight equilibria. It turns out that under some plausible conditions, positive externalities must coexist with external diseconomies elsewhere in the model, for there to exist equilibria that break free of historical initial conditions. Our main distinguishing assumption is that the positive agglomeration externalities appear with a time lag (that can be made vanishingly small). Then, in the absence of external diseconomies elsewhere, the long-run behaviour of the economy resembles that predicted by myopic adjustment. This finding is independent of the degree of forward-looking behavior exhibited by the agents. © 1998 Kluwer Academic Publishers.Ray gratefully acknowledges support under Grant SBR-9709254 from the National Science Foundation and a Fellowship from the John Simon Guggenheim Foundation. Adsera gratefully acknowledges financial aid from the Alfred P. Sloan Foundation and the Spanish Ministry of Education grant PB95-0130-CO2.1.Peer Reviewe